At Westglow Company, the Following Errors Were Discovered After the Transactions

question 86

Essay

At Westglow Company, the following errors were discovered after the transactions had been journalized and posted. Prepare the necessary correcting entry for each of the following.
a. A collection on account of ₤500 was debited to Cash €500 and credited to Service Revenue ₤500.
b. The purchase of supplies on account for ₤1,270 was recorded as a debit to Supplies for ₤1,720 and a credit to Accounts Payable for ₤1,720.

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Definitions:

Insurance Company

An organization that offers risk management in the form of insurance policies, providing financial protection against loss or harm in return for premium payments.

Fire Damages

The physical destruction or harm caused to property and assets by fire.

Semiannual Payments

Payments made twice a year, often used in the context of loan repayments or interest calculations.

Quarterly Payments

Payments made every three months during a fiscal year, often used for taxes, insurance, or interest payments.